Global Duty-Free Retailing Market 2017-2021
About Duty-Free Retailing
Duty-free retailers are those who are exempted from certain local and national taxes and duties because they sell goods to international travelers. However, taxes may be imposed on such goods once the buyer reaches their country of destination or when the value or quantity of those goods exceeds certain limits. Such retailers operate at international airports, border towns, seaports, train stations, and onboard aircraft and ships. These retailers offer products like perfumes, cosmetics, alcohol, cigarettes, chocolates, electronics, and accessories.
Technavio’s analysts forecast the global duty-free retailing market to grow at a CAGR of 8.56% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global duty-free retailing market for 2017-2021. To calculate the market size, the report considers the revenue generated from the retail sales of various consumer products to individual customers at duty-free retail stores globally.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Duty-Free Retailing Market 2017-2021
Technavio recognizes the following companies as the key players in the global duty-free retailing market: Dufry, Lagardère, Lotte Shopping, and LVMH.
Other Prominent Vendors in the market are: Aer Rianta International (ARI), China Duty Free Group, Dubai Duty Free, Duty Free Americas, Gebr. Heinemann, JR/Group (James Richardson), King Power International Group, and The Shilla Duty Free.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is APAC: Region with the highest growth rate. APAC is the fastest-growing region in the global duty-free space, primarily due to the increasing airport traffic and thriving tourism industry. In 2015, the number of international travelers to the region, in terms of international tourist arrivals, reached above 279 million. This number represented a growth of more than 5.5% compared with the previous year. Northeast Asia is the largest contributor, having close to 50% contribution of the number of international travelers. In line with this, the tourism industry in APAC is also growing significantly.”
According to the report, one of the major drivers for this market is premium product offerings and exemption of excise duties. Duty-free retailing is mostly concentrated on the sales of luxury brands of fashion goods, accessories, hard luxury items, cosmetics, fragrances, and wines and spirits. Within these categories, fashion goods, accessories, hard luxury items, cosmetics, and fragrances accounted for 64.43% of the total revenue generated in the global market in 2016. This data indicates that premium categories play a pivotal role in determining sales in the duty-free retailing space.
Further, the report states that one of the major factors hindering the growth of this market is lesser focus on shopping at travel points. The limited vacation time for many tourists compels them to focus more on traveling rather than spending time on related activities like shopping. While analyzing the daily footprint data of travelers in any given busy international airport, it was found that only 5%-10% of the total number of travelers tend to visit duty-free retail stores within the airport.
Dufry, Lagardère, Lotte Shopping, LVMH, Aer Rianta International (ARI), China Duty Free Group, Dubai Duty Free, Duty Free Americas, Gebr. Heinemann, JR/Group (James Richardson), King Power International Group, The Shilla Duty Free.
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